Kamdhenu Expands Stake In Franchisee Unit With Fresh Share Acquisition Worth Rs 3.65 Crore

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Kamdhenu Ltd has approved the acquisition of 56,000 equity shares in Maa Kudargarhi Power and Ispat Private Limited, a strategic move to deepen its franchisee integration and strengthen its branded steel production model. The transaction follows an earlier investment of Rs 11.72 crore for 1.8 lakh shares in September 2024.

Transaction Details

- The newly approved acquisition involves 56,000 shares at Rs 651 per share, totaling Rs 3.65 crore
- Shares will be subscribed via a preferential allotment, with completion expected by September 30, 2025
- Post-acquisition, Kamdhenu’s total stake in MKPIPL will rise to approximately 10.2 percent

About MKPIPL

- Incorporated in January 2020, MKPIPL manufactures iron and steel products including billets, TMT bars, and rods
- The company reported FY24 revenue of Rs 649.68 crore and PAT of Rs 4.49 crore
- It operates under a franchisee agreement with Kamdhenu to produce branded billets — a first-of-its-kind arrangement in India

Strategic Context

Kamdhenu’s investment aligns with its plan to remodel the franchisee business model by acquiring minority stakes in high-performing units. The move is expected to enhance quality control, brand consistency, and supply chain efficiency across its steel portfolio.

Sources: The Hindu BusinessLine, Kamdhenu Corporate Filings, MarketScreener, Value Research Online.